Calculator
Usable Equity Calculator
Estimate how much equity may be available for an investment property, renovation, refinance or business purpose.
Want these numbers checked? Send the result across and we'll tell you what a lender would make of it. No meeting required.
The max number is the starting point, not the target
This calculator shows you the maximum equity a lender will release at your chosen LVR. In practice, most borrowers access less than the full amount and retain a cash buffer of $20,000 to $50,000 for costs, contingencies and holding capacity.
Lenders also need to assess serviceability separately. Having the equity available does not automatically mean you can borrow against it - your income, existing debts and the purpose of the funds all factor into whether it gets approved.
If the number looks useful, the next step is a quick conversation to find out what it could actually do for you.
Frequently asked questions
How much equity can I use from my home?
Usable equity is your property value multiplied by the lender's maximum LVR, less what you still owe. At 80% LVR on a property worth $850,000 with a $520,000 loan, the maximum debt is $680,000, so the usable equity is $160,000. That is a different figure from your total equity of $330,000, which is simply value less debt. This calculator shows both, because the gap between them is what catches people out.
What is the difference between total equity and usable equity?
Total equity is your property value less your loan balance. Usable equity is the portion a lender will actually release, which is capped by their maximum LVR. You can hold substantial total equity and still have little usable equity, because the lender will not let the debt climb past their ceiling. Only the usable figure is available for a deposit, a renovation or a business purpose.
Can I access equity above 80% LVR?
Sometimes, but it costs more. Above 80% LVR, Lenders Mortgage Insurance applies. LMI can add $10,000 to $30,000 or more to your costs depending on the loan size and LVR, and it cannot normally be capitalised into the existing loan. Most lenders release equity without LMI at 80% LVR, subject to serviceability. This calculator lets you model 80%, 85% and 90% so you can weigh the extra equity against the extra cost.
Does having equity mean I can borrow against it?
No. Equity and serviceability are two separate tests and you have to pass both. The equity answers whether there is security to lend against. Serviceability answers whether your income can carry the larger repayment, and it is assessed at a buffered rate rather than the actual one. Plenty of people have the equity available and still cannot draw it, usually because existing debts or a change in income have moved the serviceability position.